Quarterly report pursuant to Section 13 or 15(d)

Technology Licenses, Net

v3.22.2
Technology Licenses, Net
6 Months Ended
Jun. 30, 2022
Technology Licenses, Net  
Technology Licenses, Net

Note 6 – Technology Licenses, Net

June 30, 

December 31, 

    

2022

    

2021

Licenses

$

2,443,356

$

1,038,606

Additions

 

15,000,000

 

1,404,750

Less: Accumulated Amortization

 

(1,354,321)

 

(1,053,420)

Licenses, Net

$

16,089,035

$

1,389,936

As noted above in Note 5, on May 12, 2022, the Company signed a series of agreements with Atomistic SAS (the “Atomistic Agreements”), which provided for an exclusive license of key mLED technology and for the custom design of a backplane chip for cash commitments totaling $30 million along with equity issuance commitments to be made by the Company relating exclusively to the achievement of performance milestones by Atomistic (See Note 10 – Capital Stock for further details). $15 million of these agreements are for the exclusive technology license for the existing know-how and existing developed technologies related to next generation mLEDs and micro-displays with pixelated epitaxial semiconductor material structures that emit red, green and blue wavelengths of visible light for light emitting diodes with a pixel pitch equal to or less than three microns.

As of the effective date of the Atomistic Agreements, the Company recorded an intangible technology license asset of $15,000,000 and an accrued liability (short-term and long-term), Licensing Fees Commitment, of $15,000,000. This intangible asset is to be amortized over a ten-year period, which began on May 12, 2022. During the three months ended June 30, 2022, the Company paid $4,500,000 towards this commitment and recorded a total of $187,500 in amortization relating to this intangible asset. The remaining $10,500,000 balance of this contractual obligation is to be paid over the next 18 to 24 months.